First State Global Listed Infrastructure Accumulation
HL comment
Our view on this Fund
Seeking out consistent growth without undue risk is never easy. There has actually been a sector that has experienced this for thousands of years - infrastructure. The first recorded toll road was the Susa-Babylon highway in the 7th century BC. Aristotle and Pliny also mentioned toll roads. All through history there are instances of private citizens having to pay to use toll roads and bridges and other infrastructure assets.
Move forward almost 3,000 years and nothing really changes. You can look almost anywhere on the planet and see private citizens paying to use roads, airports, tunnels and as populations increase so does the use of infrastructure assets. However infrastructure isn’t just about roads and ports. How does water reach our homes? Where does the electricity come from to power your TV? How does Russian gas reach your central
heating system? In answering these questions, infrastructure is involved. Not all infrastructure projects are successful, so it is not a one way bet. However infrastructure is essential to support our modern societies.
An excellent way to access these long term growth themes is via the First State Global Listed Infrastructure Fund. Interestingly, the manager is currently focusing on developed markets as he believes huge improvements are required after decades of under investment. There is also some emerging markets exposure where urbanisation is requiring huge infrastructure investment.
12-05-2008
Information from the fund manager
Please note: The information in this box has been provided by, and is issued by, the fund manager and not Hargreaves Lansdown.
HL group comment: First State Investments
Our view on this Fund Management Group as a whole
First State Investments originate from Australia and are part of the Commonwealth Bank of Australia. They are a household name and the largest fund manager in Australia managing in excess of £57.6 billion globally. They expect this to grow, having already gained access to Asian markets through various acquisitions and also seeping into the UK market through its purchase of Edinburgh based fund manager Stewart Ivory. As fund managers their expertise has been noted in specialist areas like Asia and emerging markets where they have recruited some of the industry's most talented investment professionals.
13-09-2007
HL sector comment: Specialist
Our view on this sector
There is a wide range of funds in this sector. Exposure to poorly performing banking shares has held back some financials funds. After posting strong gains commodities, resources and agriculture funds have all suffered a setback recently as profits have been taken by investors. We continue to believe the outlook for these sectors looks promising over the longer term.
07-08-2008